The Department of Economic Affairs at the Ministry of FInance has recently notified the amendments made to the National Savings Time Deposit Scheme and Kisan Vikas Patra Scheme.
“The maturity period of an account opened on or after the 1st day of January, 2023 shall be ten years and the deposits made in the account shall double on maturity”, the amendment to the Kisan Vikas Patra Scheme, 2019 stated.
Table 4, showing showing the premature closure value of account opened on or after 1st day of January, 2023 with 1000 rupees, was also inserted in the act : –
Period from the date of the certificate to the date of its encashment | Amount payable inclusive of interest (in Rupees) |
Two and half years but less than three years | 1162 |
Three years but less than three and half years | 1198 |
Three and half years but less than four years | 1234 |
Four years but less than four and half years | 1272 |
Four and half years but less than five years | 1311 |
Five years but less than five and half years | 1351 |
Five and half years but less than six years | 1392 |
Six years but less than six and half years | 1435 |
Six and half years but less than seven years | 1478 |
Seven years but less than seven and half years | 1524 |
Seven and half years but less than eight years | 1570 |
Eight years but less than eight and half years | 1618 |
Eight and half years but less than nine years | 1667 |
Nine years but less than nine and half years | 1771 |
Nine and half years but before Maturity of Certificate | 1771 |
On maturity of certificate | 2000 |
Even though the amendment was affected retrospectively, deemed to have come into force on the 1st day of January, 2023, the Explanatory Memorandum said the following, “The Kisan Vikas Patra (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.”
The amends to the National Savings Time Deposit Scheme, 2019, also deemed to have come into force on the 1st day of January, 2023, notified the changes to the the rate of interest as specified below shall be applicable to the deposit made on or after 1st day of January, 2023 under the Scheme.
One Year Deposit accounts – 6.6 % p.a.
Two – Years – 6.8 % p.a.
Three – Years – 6.9 % p.a.
Five Years – 7 % p.a.
In regard to the retrospective application, it was also clarified that, “The National Savings Time Deposit (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.”
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